…As Chinese bank approves $42.5m loan for Enugu housing scheme***

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, on Thursday, said the major cause of the fuel scarcity currently being witnessed across the country is shortfall in supply of petroleum products.

Kachikwu, who stated this in a news briefing in Abuja, however, said that the Nigerian National Petroleum Corporation (NNPC) was making efforts to ensure that queues at filling stations disappeared in a couple of days.

“Presently, queues in Lagos have reduced. We know that Lagos, Abuja, Benue, Port Harcourt were among the worst-hit areas.

“Benue has been dealt with; Port Harcourt is quite moderated. Apart from these areas, other places in the country are probably liquid.

“The major problem is the gap in terms of volume, because NNPC is the only one importing the product to the country,” he said.

The minister assured that there was adequate storage facility for imported products, adding that emergency measures were in place to ensure that the products were available during the Yuletide and post-January.

He said that four vessels laden with petroleum products would “berth in a few days and a total of 20 cargoes are also expected with petroleum products’’.

Kachikwu said that the NNPC had, as at Wednesday, discharged products at its depots, adding that emergency supply, quick truck delivery and stricter monitoring were measures adopted to ensure that queues disappeared.

“I have asked the Department of Petroleum Resources (DPR) and Petroleum Products Pricing Regulatory Agency to ensure stricter sanctions on any station that refuses to abide by the rules.

“They need to take a firm action to ensure that we get quick results,’’ he said.

Kachikwu further assured that the market would be flooded with more products to cushion effects of over-subscription through Kaduna refinery production, adding that Port Harcourt was expected to start producing 2.1 million litres of petrol per day.

In the meantime, Chinese biggest bank, the Industrial and Commercial Bank of China, ICBC, has approved $42.5 million loan for a multi housing development scheme, HELIU residences in Enugu. The loan was secured under the guarantee of the Chinese Credit Insurance Corporation, SINOSURE, for the construction of duplexes, provision of electricity, roads, water and other facilities by the China Shenyang International Economic and Technical Corporation Limited, CSYIC.

Making the disclosure to newsmen in Enugu,  yesterday,  Managing Partner of F.I.T. Consult, the Nigerian Developer building the HELIU Project, in partnership with the Enugu State Government,  Chief Loretta Aniagolu said, the deal was sealed  after signing Commercial Contract with CSYIC, in Enugu. Aniagolu said the Chinese team led by the CSYIC President, Madam Tang Lezhen signed the documents with F.I.T. Consult, for financing of the contract.

Aniagolu said: “We wanted to bring the project with our own funds to a certain level before the Chinese come in, so that they don’t start from scratch and for them to know that we are very serious.  We have finally tied up everything on this visit.

“The bank funding for the project is from China, through the Industrial and Commercial Bank of China, ICBC, which is   the biggest bank in the world, with its 2016 turnover at   about   $2.3 trillion. The entire transaction of $42.5 million is being guaranteed locally by Access Bank Plc.”

According to her, the interest  rate is four per cent, while the period for repayment of the loan is eight years. She added that two years moratorium is for construction of the projects while 6 years is for the repayment.

“So it is a fantastic arrangement,” she said. Aniagolu expressed optimistism of the loan repayment, noting that they were quite sure of the market in the South-East zone, particularly with the country gradually coming out of recession and having already received deposits on over 50 percent of the serviced plots. “Secondly, we are also working with the Imperial Mortgages Limited   that is providing mortgages for home buyers, making it easier for them to pay for the houses .

“Presently, of the 60 bungalows   we’ve done so far, most have actually been sold on a   cash basis , while Imperial Mortgages is providing mortgages for the rest.

So, we have an arrangement where we are sure that in those eight years or less, we should be able to repay funds.” She further disclosed that over N2billion has been spent on various aspects of the project, such as earth works, 20 kilometers drainage, culverts, buildings, etc. She further remarked that they were excavating for a Dam for independent water supply in the residence, adding that electricity would also be generated using Low Poor Fuel Oil, LPFO.

Citizen with additional report from Vanguard